Japan Mulls Higher Nursing Care Premiums for High-Income Elderly

Tokyo, Sept. 18 (Jiji Press)--Japan's welfare ministry on Friday began considering a plan to raise nursing care insurance premiums for high-income earners aged 65 or older from fiscal 2027.

The proposal was submitted to a subcommittee of the Social Security Council, which advises the welfare minister, the same day. The review comes as higher public pension payments are causing low-income earners to be burdened with higher nursing care insurance premiums.

Premiums for those aged 65 or older are calculated by multiplying a base figure set by local governments by a rate determined by their incomes. In fiscal 2024 to fiscal 2026, the nationwide average of the base figure stood at 6,225 yen per month.

There are 13 rates, ranging from 0.285 to 2.4, with lower rates applying to people with lower incomes. Increases in pension payments, reflecting inflation, are causing low-income earners to qualify for higher rates, resulting in higher premiums.

Under the latest proposal, the ministry plans to raise the highest rate, applied to people with annual incomes of 7.2 million yen or more. It also plans to divide lower-income brackets into smaller categories to curb sharp increases in premiums when people move into a higher rate bracket.

[Copyright The Jiji Press, Ltd.]